"14 Companies Caught Violating Customs Law by Passing Off Chinese Flanges as Domestic Products"
A company that falsely represented Chinese-made flanges as domestic products to gain unfair profits was caught by customs authorities. A flange is a 'pipe joint' connection part used to connect pipes to pipes or pipes to other machines.
On the 17th, the Busan Customs Office of the Korea Customs Service announced that it conducted a planned crackdown from February to June to block the circumvention import of Chinese-made flanges and caught 14 companies for violating the Customs Act. The flanges seized from these companies are estimated to be worth approximately 25.2 billion KRW.
The crackdown was carried out to protect the steel industry in the Busan area by detecting companies that disguised low-priced Chinese flanges as domestic products to gain unfair profits.
The companies caught in the crackdown are suspected of ▲ false import declarations (declaring flanges as low-taxed 'other steel products'), ▲ origin laundering (circumventing imports by labeling different item numbers to disguise the origin for export and sale), and ▲ violations of distribution history reporting (importers falsely reporting distribution history as manufacturers or retailers to evade reporting obligations).
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Busan Customs plans to take corrective actions against companies that circumvented imports by declaring flanges as other items, conduct additional investigations on companies that violated origin rules, and impose criminal penalties if charges are proven. Administrative measures such as fines will also be imposed for acts like false distribution history reporting.
A real photo of Chinese-made flanges seized during a customs planned crackdown. Provided by the Korea Customs Service.
View original imageA Busan Customs official said, “We plan to continuously conduct focused inspections to prevent violations of distribution history reporting in advance and to eradicate the practice of disguising low-priced imported goods as domestic products by falsifying their origin.”
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